The world of credit can be complicated, and many small business owners simply don’t have time to figure out all the details. So they may ignore their business credit scores, mistakenly thinking their personal credit scores are all they need to worry about.
But that’s just not true. While a startup may be evaluated for financing based on their personal credit score, once the business is up and running, lenders will place more emphasis on their business credit scores.
Creating a separate bank account for your business is an important first step to dividing your personal and business finances. Next up: Knowing key differences between your personal and business credit. Here are some common myths surrounding business credit—and what you need to know to help your business credit scores soar.
Myth #1: I Have Good Personal Credit, So I Don’t Need Business Credit
If you’re a startup with no financial track record for your business, lenders will look at your personal credit score when you need to borrow money. Bu